FirstEnergy getting $400m on LS Power hydro deal

FirstEnergy (NYSE:FE) CEO Anthony Alexander said Sept. 25 that his company is getting a purchase price of $400m from a sale of hydroelectric assets to LS Power.

Alexander revealed the sales price for the first time during a morning presentation at the Bank of America Merrill Lynch 2013 Power and Gas Leaders Conference in New York City. The presentation was webcast.

FirstEnergy subsidiaries said Sept. 4 that they had applied for authorization from FERC to sell 11 hydro power stations in Pennsylvania, Virginia and West Virginia to Harbor Hydro Holdings, a subsidiary of LS Power Equity Partners II.

The hydro stations have a total capacity of 527 MW, which represent less than 3% of FirstEnergy’s generation fleet. In addition to FERC, the agreement needs approval from the Virginia State Corporation Commission and other entities.

Closing is targeted for the fourth quarter of this year. But one of the larger hydro projects, the 451-MW Seneca Pumped Storage facility in Pennsylvania, must overcome a challenge by the Seneca Nation.

About Wayne Barber 4201 Articles
Wayne Barber, Chief Analyst for the GenerationHub, has been covering power generation, energy and natural resources issues at national publications for more than 20 years. Prior to joining PennWell he was editor of Generation Markets Week at SNL Financial for nine years. He has also worked as a business journalist at both McGraw-Hill and Financial Times Energy. Wayne also worked as a newspaper reporter for several years. During his career has visited nuclear reactors and coal mines as well as coal and natural gas power plants. Wayne can be reached at wayneb@pennwell.com.